Aventus Retail Property Fund (ASX:AVN or the Fund) announced that it has executed agreements with bank and institutional lenders for a 7 year $110m Loan Note Facility (Facility), which will mature in January 2025.
This is in accordance with the Fund's strategy to diversify and lengthen its debt profile. The purpose of the Facility is to refinance a portion of the $200m tranche of bank debt expiring in October 2018. The Fund anticipates that the remaining portion of the tranche (approximately $90m) will be refinanced by the end of the financial year.
As a result of these initiatives, the Fund's weighted average debt expiry(1) will increase from approximately 2.9 years to 3.7 years and the weighted average cost of debt for FY18 is expected to remain at 3.3% per annum. There is no material impact on the Fund’s FY18 FFO earnings guidance as provided on 21 December 2017.